Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China, Kyrgyzstan to tap cooperation potential under comprehensive strategic partnership

On 7 June China and Kyrgyzstan vowed to explore more cooperation potential under their newly-established comprehensive strategic partnership. The pledge was made by Chinese Premier Li Keqiang and visiting Kyrgyz President Sooronbay Jeenbekov at Diaoyutai State Guest House in Beijing. Xinhua [CN*] China's top legislator LI Zhanshu meets with Kyrgyz President Sooronbay Jeenbekov Xinhua

Interview: CSTO head eyes closer partnership with SCO

The Collective Security Treaty Organization (CSTO) is looking forward to closer ties with the Shanghai Cooperation Organization (SCO), said CSTO Secretary General Yuri Khachaturov. "The CSTO takes a serious approach to the development of effective and mutually beneficial cooperation with the SCO. We are always open to filling it with practical matters," Khachaturov told Chinese reporters in a recent interview. (Xinhua)

The Shanghai Cooperation Organization champions a new model of expanded regional cooperation
The SCO came into being against a challenging international backdrop in the aftermath of the Cold War. It was created as a new mechanism to meet the need of countries in the region to maintain stability, and to promote shared development. (Bloomberg)

Xi Jinping, Vladimir Putin hail ‘all-time high’ in ties, sign US$3 billion of nuclear deals

The two countries also signed a raft of deals, including for nuclear cooperation projects totalling 20 billion yuan (US$3.13 billion) and a US $1 billion industrial investment fund. (Scmp)

Putin's China trip: High-speed train, ice hockey, local snacks

Putin and Xi took high speed train to Tianjin accompanied by CEOs of Russian and Chinese railway corporations, discussed Moscow-Kazan and using China’s technology&money to build/upgrade transit routes to Europe via Russia and Central Asia. (Ecns)

Chinese region of Tibet to build three more airports: Xinhua
The Chinese region of Tibet is planning to build three new airports to promote tourism and economic growth, bringing the total of civil airports in the far west region to eight, the official Xinhua news agency said on Saturday. (Reuters)

Rosatom deal to build China power units worth $3.6 billion: China National Nuclear
China National Nuclear Power Co Ltd said on Sunday that two deals signed with Russian state nuclear company Rosatom for the construction of four nuclear power units in China were worth a combined $3.62 billion.Rosatom said on Friday it would construct two units each at the Xudabao and Tianwan nuclear plants. (Reuters)

India refuses to endorse China's 'One Belt, One Road' initiative
Prime Minister Modi, speaking at the Shanghai Cooperation Organization summit, suggested that the BRI project does not adequately respect the 'sovereignty and territorial integrity' of all nations involved (Taiwan News)

China’s Belt and Road plans dismay Pakistan’s poorest province
For Pakistan, this is an enormous investment — equal to 20 per cent of the whole country’s GDP — and the government has claimed it will bring wealth and development to Balochistan and change the fortunes of its people. But the protests by children in Gwadar show that it is not universally popular. (FT)


CENTRAL ASIA 

Turkmenistan's president effects radical switch-around of top security officials
The head of Turkmenistan’s security services has been fired and substituted by the head of the army in a sweeping but mysterious reshuffle of top-level security officials.
Turkmenistan’s state news agency reported on June 13 that Dovrangeldy Bayramov was also demoted from colonel to major. All that was given by way of an explanation for the dismissal was that Bayramov, who had held the post since April 2016, had committed “serious shortcomings in his work.” (Eurasianet)

How Singapore, Astana and St Petersburg preview a new world order

Ahead of the crucial Shanghai Cooperation Organization (SCO) summit in Qingdao this coming weekend, three other recent events have offered clues on how the new world order is coming about. (Asia Times)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China's Sinomach to build $845 million railway in western Iran

China National Machinery Industry Corp [CNMAC.UL], known as Sinomach, has signed a contract to build a 5.35 billion yuan ($845 million) railway in western Iran, adding to a wave of Chinese investment in the country. (Reuters)

China hosts Visegrad group, calls them 'dynamic force' in EU
The four countries have been at odds with Brussels over issues including immigration and fundamental rights, with the Slovak prime minister complaining in January they should not be treated as “black sheep” in the EU.China has courted central and eastern European states, including with annual summits, which has fed concern in Western European capitals that Beijing is seeking to divide the continent. (Reuters)

Tillerson’s final warning on Belt and Road financing only proves China’s influence on the rise

The policies of the Fed, and the still-unfolding costs of the 2008 US crash, are likely to cause immeasurably more “debt distress” than China’s Belt and Road Initiative spread over the next two decades, David Dodwell said. (scmp)

Japan warms to China’s belt and road plan with talks on business tie-ups, sources say
Japan may soon become more involved in China’s multibillion-dollar belt and road plan, with the two countries expected to begin exploring business cooperation deals in third countries, according to diplomatic and trade sources. (scmp)

Shanxi police extradite Fox Hunt suspect from Tajikistan

A suspect has been returned to China from Tajikistan as a campaign to capture fugitives suspected of economic crime continues, police in Shanxi Province said Sunday.It is the first suspect that Shanxi police have brought back from Tajikistan in the Fox Hunt campaign, which targets suspects of economic crimes who fled overseas. (Global Times)

Pakistanis distressed as Uighur wives vanish in China dragnet
Islamabad (AFP) - Every autumn on the mountainous Karakoram Highway, part of the ancient Silk Road, groups of Pakistani merchants living in China's far west would wave goodbye to their Chinese wives and cross the border to spend winter in their home country.As the snow piled high, the men
would stay in touch with their families by phone, longing for the spring thaw that would allow them to be reunited in Xinjiang.But last year many of their calls suddenly went unanswered. (yahoo)

Linking China to the EU's 'gateway' for exporters
Kazakhstan seeks to become part of China's supply chain, while Poland seeks infrastructure funding (nikkei)

Is China's Belt and Road working? A progress report from eight countries

Beijing's infrastructure push clouded by project delays and mounting debt (nikkei)

China and Russia’s uneasy partnership in Central Asia
Bound by common resentment towards the overwhelming power of the West, China and Russia have grown increasingly close over the past decade. They enjoy compatible economies — Russia supplies hydrocarbons and other resources that fuel Chinese industry. They push back at the promotion of Western democracy and human rights, seeing them as threats to internal stability. Both seek to limit the presence of the West, particularly any Western military activity, in their immediate backyards — Eastern Europe for Russia, the South China Sea for China and Central Asia for both. (East asia 
forum)

Russia’s Unhappy Energy Marriage with China
With all the quiet chaos beneath the surface in Moscow, Beijing seems poised to benefit. (The Diplomat)

China Expanding in Russia’s Transbaikal—and Russian Taxpayers Are Paying for It

A new scandal is adding fuel to the fire of Russian fears about Chinese penetration of Siberia and the Russian Far East. The Russian media in those regions is reporting that in order to sell Russian agricultural products to China—something that benefits both local oligarchs and Moscow—Russian taxpayers are being forced to subsidize the sector. And those taxpayers are reportedly receiving nothing back in return, because what the Chinese are willing to pay is less than the costs Russians incur producing the food (Babr24.com, March 22, 2018; RBK, November 23, 2017). (

Pakistan’s duty concessions to China threaten local industry
Local manufacturers, who were not consulted on the plans, are up in arms as their government proposes major cuts to concessions on imports of Chinese goods. (Asia Times)

Departure ceremony of China-Europe freight train service held in Shanghai
A departure ceremony of China-Europe freight train service for cross-border e-commerce is held at Yangpu Station in Shanghai, east China, March 30, 2018. The train left Shanghai for Moscow in Russia on Friday. (Global Times)

Two Chinese militants among seven killed in anti-terrorism operation in Afghanistan
Two Chinese militants were killed in an operation by Afghan military forces in the country’s northeast on Friday, which left at least seven people dead and 13 injured, according to local media reports. (Scmp)




CENTRAL ASIA

What Turkmenistani President’s Visit to Gulf Means for TAPI Pipeline Project
Turkmenistan’s President Gurbanguly Berdimuhamedow visited the United Arab Emirates and Kuwait in mid-March as part of a campaign to revive a long-stalled natural gas pipeline from his country to Pakistan and India (Neftegaz.ru, March 16). The visit occurred three weeks after a February 23 groundbreaking ceremony marking the latest effort to put the Turkmenistan–Afghanistan–Pakistan–India (TAPI) pipeline back on track. (jamestown foundation)

Tajikistan Slams U.S. General’s Claim of Taliban Link
Tajikistan and Russia have hit back after General John Nicholson (pictured), the commander of U.S. forces in Afghanistan, said he’d seen"destabilizing activity by the Russians” there.In an interview with the BBC, Nicholson said he had evidence that Russian weapons were being smuggled across the Tajik border to the Taliban in Afghanistan.

Kyrgyzstan: Atambayev Returns, Opening Up Front Against President
The former president has taken potshots at his erstwhile protege, igniting talk of a growing rift among the ruling elite. (Eurasianet)

La via del ghiaccio

La colonnina di mercurio ha toccato i - 27° C quando lo scorso 8 dicembre la nave rompighiaccio Christophe de Margerie ha effettuato le procedure di imbarco del primo carico di gas naturale liquefatto (Gnl) nel porto russo di Sabetta, nella regione autonoma di Yamal-Nenets, più vicino al Polo Nord che a Mosca. Presieduta da Vladimir Putin, la cerimonia d'inaugurazione ha sancito formalmente la piena operatività dello stabilimento Yamal LNG, l'impianto per la liquefazione di gas più a nord del pianeta che, stando al presidente russo, dovrebbe rendere la Federazione leader nel settore. Perché "la Russia ha tutte le caratteristiche per diventare il più grande produttore di gas naturale liquefatto al mondo", primato che già detiene nelle forniture via pipeline del combustibile fossile non condensato.

Con una capacità massima stimata di 16,5 milioni di tonnellate di gas all'anno, Yamal dovrebbe - entro il 2020 - aiutare Mosca ad accaparrarsi l'8% del mercato mondiale, accorciando la distanza che la separa dal Qatar, saldo in testa alla classifica dei paesi esportatori con una fetta pari al 30% della produzione globale. La strada è lunga ma la messa in funzione dello stabilimento - entro i tempi e i costi previsti - costituisce di per sé un primo strombazzato traguardo. Come ha ricordato Putin alludendo alle difficoltà tecniche e finanziarie, "chi è all'origine del progetto si è assunto un rischio, e questo rischio ora è giustificato, ha portato i suoi frutti".

La mente corre al 2014, quando il mirino delle sanzioni americane si posò su Gennady Timchenko, secondo principale azionista di Novatek, la compagnia privata che detiene il 50% delle quote nel consorzio russo-francese-cinese dietro al progetto artico; gli altri player sono Total (20%), la China National Petroleum Corporation (20%) e il Silk Road Fund (9%), fondo da 40 miliardi di dollari creato da Pechino per finanziare i progetti tra Asia, Africa ed Europa all'interno dell'iniziativa di sviluppo infrastrutturale "Belt and Road Initiative". All'epoca, fu proprio l'iniezione di 12 miliardi di dollari da parte di Export-Import Bank e China Development Bank a resuscitare il progetto. Una delle tante operazione finanziarie compiute dal gigante asiatico in territorio russo, dal prestito di 11 miliardi di dollari stanziato lo scorso luglio per il fondo sovrano Russian Direct Investment Fund e la banca statale Vnesheconombank (entrambi sotto sanzioni) fino alla più recente acquisizione del 14,2% del colosso Gazprom da parte della controversa società CEFC China Energy, travolta ultimamente da un caso di corruzione con diramazioni tra Hong Kong, il Chad e l'Uganda. Di più. Secondo il centro di ricerca AidData, nel 2014 la Russia si è classificata destinazione privilegiata degli "aiuti esteri" cinesi, termine fuorviante che in realtà comprende prestiti non concessionari, crediti all'esportazione verso acquirenti o fornitori, e prestiti in cambio di commodities.

Non è un caso, quindi, che la prima traversata della Christophe de Margerie abbia come meta proprio la Cina e che la porzione più consistente del 95% del gas già assegnato da qui al 2020 sia destinata all'Asia, continente corteggiato da Putin fin dalla crisi di Crimea. Tutto è cominciato con lo storico accordo da 400 miliardi di dollari siglato da Pechino e Mosca nel maggio del 2014 per l'acquisto trentennale di oltre 38 miliardi di metri cubi di metano all'anno. Appena alcuni mesi fa Gazprom ha annunciato che Power of Siberia, la prima pipeline a collegare i due paesi, comincerà a pompare gas dal dicembre 2019. In tempi non definiti, un secondo gasdotto con partenza dalla Siberia occidentale (l’Altai gas pipeline), dovrebbe in futuro raggiungere la Repubblica popolare attraverso la strettissima lingua di terra che separa la Mongolia dal Kazakistan. Ma tutto questo potrebbe non bastare. Secondo fonti Bloomberg, nel tentativo di affrancarsi dai combustibili inquinanti, la seconda economia mondiale potrebbe trovarsi costretta a importare 76 milioni di tonnellate di Gnl nel giro di tre anni.

Svincolandosi dalla ragnatela di infrastrutture energetiche, Yamal LNG sposta la partnership sino-russa in territori, o meglio in acque, inusuali. Stando alle stime dell'agenzia statale Xinhua, ogni anno 4 milioni di tonnellate di Gnl prenderanno il largo lungo la rotta del Mare del Nord, accarezzando la costa siberiana fino a raggiungere l'ex Celeste Impero. Un viaggio di appena 15 giorni, circa la metà di quanto necessario passando per l’Europa e il canale di Suez. Si tratta di un itinerario impervio, reso sempre più accessibile dallo scioglimento dei ghiacci, a cui Pechino guarda da tempo. Nel 2013, la statale Cosco è stata la prima società al mondo a spedire una nave cargo attraverso il passaggio a Nordest; lo scorso anno le navi battenti bandiera cinese sono state cinque su un totale di 19.

Per la Cina si tratta dell'ennesimo canale commerciale da annettere alla Belt and Road, tanto che, riportando la messa in funzione dello stabilimento Yamal LNG, il quotidiano China Daily ha definito il nuovo terminale il punto di partenza della "Ice Silk Road", concetto coniato dal presidente Xi Jinping a stretto giro dalla formalizzazione dell'inserimento del Mar Artico tra le "rotte economiche blu" verso l'Europa, in aggiunta alle tratte Mar cinese meridionale-Oceano Indiano-Mediterraneo e a quella che dal Mar cinese meridionale va verso il Pacifico. La volontà di coinvolgere Mosca nel progetto Nuova Via della Seta - possibilmente creando sinergie con l'Unione economica eurasiatica - si sposa quindi con le conclamate ambizioni artiche di Pechino. Se, dal 2013, il gigante asiatico è osservatore permanete nel Consiglio Artico, è solo nell'ultimo anno che il pressing diplomatico nella regione si è fatto particolarmente intenso, soprattutto nei confronti di Norvegia, Finlandia e Islanda. La motivazione è intuibile: nel Mar Artico si nascondono il 13% delle riserve inesplorate di petrolio e circa un terzo del gas ancora in attesa di essere estratto. Sul versante russo, intanto, la necessità di frenare la competitività degli altri principali esportatori (Qatar e Stati Uniti) ha già portato alla pianificazione di un secondo impianto artico di Gnl, nella penisola di Gydan, a est di Yamal. Stavolta, però, potrebbero essere i capitali sauditi a fare la differenza.





(Pubblicato su Left)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

How China’s Belt and Road builds connections

As the dust settles from the Chinese Communist Party’s 19th Congress, one of the strongest edifices left standing is Xi Jinping’s signature foreign policy initiative — the US$1 trillion Belt and Road Initiative (BRI). Two members of the BRI Leading Small Group, Wang Hunning and Wang Yang, secured five-year positions on the reshuffled Politburo Standing Committee. The BRI even received an awkward mention in the revised Party Constitution. (East Aisa Forum)

Trump tweet draws China, Pakistan closer

A Twitter attack by US President Donald Trump against Pakistan on New Year's Day appears to be helping boost the already close ties between Pakistan and China as days after the tirade two important advances in financing and military cooperation between the latter two countries were reported.
Trump's tweet, which accused Pakistan of giving safe haven to terrorists, drew a stern backlash in Islamabad and staunch defense of Pakistan in Beijing - a dynamic that experts say highlights the further strengthening of the relationship, as the US, in its broader geopolitical strategy, aims for closer ties with India, while casting aspersions on Pakistan. (Global Times)

THANK YOU TRUMP: THAT TWEET WAS JUST WHAT CHINA NEEDED TO TAME PAKISTAN
US president’s outburst and Washington’s decision to punish old ally comes at an opportune time for Beijing, which has been facing uncharacteristic pushback from Islamabad (scmp)

First Djibouti ... now Pakistan port earmarked for a Chinese overseas naval base, sources say

Beijing plans to build its second offshore naval base near a strategically important Pakistani port following the opening of its first facility in Djibouti on the Horn of Africa last year.Beijing-based military analyst Zhou Chenming said the base near the Gwadar port on the Arabian Sea would be used to dock and maintain naval vessels, as well as provide other logistical support services. (Scmp)
Turkmen November gas supplies to China slide versus October amid winter supply crunch: customs data

China’s monthly natural gas imports from leading supplier Turkmenistan fell in November from the previous month to their lowest since December 2016, leaving Beijing increasing purchases from elsewhere to try to cope with a growing supply crunch. (Reuters)

China's Imports of Turkmen Gas Decline
Turkmen gas exports to China fell from October to November, with sources indicating Ashgabat isn’t pumping promised volumes. (The Diplomat)

Russia Tightens Oil Grip With China's Second Pipeline
The project is intended to deepen energy cooperation between the countries and serve the China-proposed Belt and Road Initiative, according to Xinhua. Russia also aims to start natural gas sales via the Power of Siberia pipeline by December 2019. (Bloomberg)

Time China met its promises and took leading role in Afghanistan

Beijing needs to move beyond rhetoric and take more concrete action to help and guide the violence-torn nation on its northern borders, writes Raffaello Pantucci (Scmp)

China’s Ambitious New ‘Port’: Landlocked Kazakhstan 

China’s largest shipping company has poured billions of dollars into buying seaports in Greece and other maritime nations around the world. But the location of its latest big foreign investment has given a curious twist to the expanding ambitions of the China Ocean Shipping Company: The nearest ocean is more than 1,600 miles away. The state-owned Chinese shipping giant, known as COSCO, became the 49 percent owner this past summer of a patch of frost-covered asphalt bisected by railway tracks and lined with warehouses in landlocked Kazakhstan. The barren wilderness close to the border with China stands near the Eurasian Pole of Inaccessibility, meaning that nowhere on the landmass of Europe and Asia is more distant from the sea. (NY Times)

China and Pakistan to use yuan in bilateral trade
Pakistan is hoping to boost trade and economic ties with China by trading with the country in yuan, the State Bank of Pakistan in Karachi has announced.Imports, exports and financial transactions between the two countries can now be denominated in the yuan, it said in a press release. (scmp)

Cargo trains make record trips between Yangtze River Delta, Europe

Freight trains made a record 1,127 trips last year from China's Yangtze River Delta to Europe and central Asia on 14 routes, according to Shanghai Railway Bureau on 2 January. It marked a yearly increase of more than 47%, it added. A greater variety of products, from small commodities, electronics, textiles, auto parts to vehicles, mechanical equipment and furniture are delivered between China and 16 countries in the European Union and central Asia. The fastest train can arrive at Europe in 12 days, only one-third of the transportation time by sea. (Xinhua)

700 China-Europe trains pass through Xinjiang in 2017

Urumqi Railway Bureau said 700 China-Europe trains ran through the capital of northwest China's Xinjiang Uygur Autonomous Region in 2017.Westbound freight trains from other parts of China stopped in Urumqi for goods adjustment before exiting the country through Horgos or Alataw Pass for destinations in Central Asia or Europe. Last year, 70 percent of China-Europe trains exited China from Xinjiang.(Xinhua)

Why China could double down on its support for Iran despite US calls for action over ‘freedom’ protests

China is expected to uphold its strong support for Iran amid US calls for emergency United Nations sessions to pressure Tehran over nationwide protests.As the protests entered a second week, US ambassador to the United Nations Nikki Haley called on the international community to speak out about demonstrations, which have claimed more than 20 lives. (Scmp)

Iran to probe into frozen bank accounts in China
“Chinese banks claim that the main reason for blocking the bank accounts of #Iranian companies and businessmen is money laundering and providing financial support for terrorists. Investigations are being made in this regard.” (Meher News)

China land grab on Lake Baikal raises Russian ire
Nationalists up in arms after Chinese investors snap up lakefront properties (FT)

The Geopolitics of the Beijing-Moscow Consensus

The integration of China’s Belt and Road and Russia’s Eurasian Economic Union will have major implications. (The Diplomat)

Kazak and Chinese employees jointly guard the 10,000-km Central Asia-China gas pipeline

Oscar, a Kazak national, was patrolling like any other day along the Central Asia-China Gas Pipeline in Kazakhstan. A vice manager for the security department in AGP (Asia Gas Pipeline LLP), a joint natural gas pipeline company between China and Kazakhstan, he has worked there for the past eight years.Entering winter in late-December, the demand for natural gas had been increasing dramatically in China as millions of households have recently began transitioning from coal to gas to heat for heating their homes following the government's push for a cleaner environment.PetroChina provides 30,000 jobs to Kazak locals. And as more and more locals are employed, gas companies across Central Asia are sending many of them to China to learn the Chinese language and culture. (Global Times)

Xinjiang towns, villages celebrate Party spirit on loudspeaker systems

Xinjiang towns and villages have been using loudspeakers to repeatedly publicize the spirit of the 19th National Congress of the Communist Party of China (CPC) in a move that local officials say is cheering people up and warming their hearts.Loud speakers in Akto county, the Kizilsu Kirgiz Autonomous Prefecture of Northwest China's Xinjiang Uyghur Autonomous Region began to repeatedly play reports delivered at the 19th CPC National Congress after it was held in October, as well as government policies beneficial to people, the region's government said on Wednesday. (Global Times)

HSBC opens China desk in Poland to further tap Belt and Road opportunities
HSBC has launched a business desk in Poland to facilitate trade and investment flows between China and countries in Central and Eastern Europe （CEE） as two-way business increases dramatically under the Belt and Road Initiative.The bank’s new China Desk will focus, in particular, on Poland, the Czech Republic, Slovakia, Hungary and Romania, which together have attracted the bulk of China’s investment in the region. According to research consultancy Rhodium Group, Chinese investment in these five countries increased to 4.5 billion euros (US$5.4 billion) between 2000 and 2016. (Shine)

CENTRAL ASIA

Making Uzbekistan. Nation, Empire, and Revolution in the Early USSR

Adeeb Khalid’s Making Uzbekistan is an important book, which challenges, through impressive research work and an extremely enjoyable narrative, recent scholarship and the many myths surrounding the national-territorial delimitation of Soviet Uzbekistan. Khalid has produced a very welcome attempt to return agency to modern Central Asians, by arguing that the ultimate configuration of the Uzbek nation-state was not imposed by a distant power: rather, it represented the culmination of a longer-term plan led by the lively, progressive and cosmopolitan Uzbek intelligentsiya that emerged locally during the late tsarist era. (Taylor & Francis online)

Turkmenistan’s president banned black cars

To satisfy Gurbanguly Berdymukhamedov’s latest whim, drivers must repaint their black vehicles at their own expense.

Turkmenistan Turns Off the Lights in Northern Afghanistan
Nothing says friendship like turning off the power on New Year’s Eve. (The Diplomat)

This Is What Nuclear Weapons Leave in Their Wake
A remote area of Kazakhstan was once home to nearly a quarter of the world’s nuclear testing. The impact on its inhabitants has been devastating. (National Geographic)

The Feminized Farm: Labor Migration and Women's Roles in Tajikistan's Rural Communities
As Tajik men go abroad in search of higher pay, women take on increased roles in Tajikistan’s agriculture sector. (The Diplomat)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China thinks big in backing Russian Arctic LNG project
Belt and Road turns north toward vast resources and key shipping route.Russia has commenced shipments of liquefied natural gas from the Arctic as part of one of the world's largest LNG development projects, and it owes China a big "thank you."
To read the full sto (Nikkei)

Arctic will make Russia richer with China’s help: Putin

The Independent Barents Observer said Putin made notable mention of China in a four-hour long press conference at the Kremlin on December 14 after returning from the official launch of the new Yamal LNG plant and Sabetta sea port in Siberia.“Putin made clear that the Arctic is a key ground for cooperation with the great Asian power, and underlined that the country “expresses big interest to the Northern Sea Route,” the Norway-based online publication noted. (Asia Time)

US$1.6 billion ship deal will put Russian LNG on fast track to China

A joint venture between China LNG shipping and Teekay LNG has reportedly signed a US$1.6 billion deal to finance six LNG carriers, which will service Russia’s Yamal LNG project.The carriers, currently being built by South Korea’s Daewoo, can operate the northern route from the Yamal peninsula to destinations on Asia-Pacific market without icebreaker assistance, according to the report in The Asset. The first vessel is expected to deliver in January of next year, while the rest will arrive by 2020. (Asia Times)

More than 1 trln USD invested in western China
China has plowed 6.85 trillion yuan (1.04 trillion U.S. dollars) into the development of its western regions since 2000 to help the less-prosperous inland catch up with coastal areas. "So far, there have been 317 major projects...which not only improved infrastructure in western regions but boosted advantageous industries and people's livelihood," Meng Wei, spokesperson with the National Development and Reform Commission (NDRC), said Monday at a press conference. In 2017, nearly 500 billion yuan was pumped into 17 infrastructure projects covering railways, roads, water conservation and energy.(Xinhua)

Can Chinese investment help Nepal’s new communist alliance make the break from India?
A coalition of two communist parties secured about two-thirds of the seats in both the Parliament and the Provincial Assembly, Nepal’s two legislative bodies.The large margin by which the communist alliance, which is seen as closer to China, won the landmark polls was widely viewed as a repudiation of long-standing Indian influence in the country and an endorsement of stronger ties with Beijing.
The new government will be formed by the Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) and the CPN (Maoist Centre). Ishwor Pokhrel, general secretary of the CPN-UML said in an interview with the South China Morning Post that the result showed that voters wanted an end to the nation’s instability. “People voted in this election towards political stability,” he said. “This result [is one] which Nepalese people have very eagerly awaited for a long time.”(Scmp)

Cross-border yuan settlement in China’s Xinjiang reaches 39 billion in Nov, grows 50-fold in seven years (Global Times)

AP Exclusive: Anger with China drives Uighurs to Syrian war
Since 2013, thousands of Uighurs, a Turkic-speaking Muslim minority from western China, have traveled to Syria to train with the Uighur militant group Turkistan Islamic Party and fight alongside al-Qaida, playing key roles in several battles. Syrian President Bashar Assad’s troops are now clashing with Uighur fighters as the six-year conflict nears its endgame. (AP)

China-Kazakhstan border woes dent Silk Road ambitions
Delays, high costs and mutual animosity hamper key trade hub on Beijing’s Belt and Road (Financial Times)

Pakistan, China say economic partners till 2030

Pakistan and China on Monday unveiled a long-term cooperation plan in economic development envisioning cooperation until at least 2030 in areas ranging from infrastructure to information technology. (Reuters)

YUAN PROPOSAL PUZZLES FINANCIAL CIRCLES

THE recent announcement by Planning Minister Ahsan Iqbal that all trade between China and Pakistan will now be settled in local currency, whether the Pakistani rupee or Chinese yuan, has raised some interesting questions. A swap arrangement between China and Pakistan was signed on Dec 31, 2011. The fact that Pakistan runs a large and persistent deficit in its bilateral trade with China means that the supply of yuan will continuously need to be replenished, either through borrowing or through an expansion of the swap arrangement, or a combination of both. Since the signing of the swap arrangement, Pakistan’s bilateral trade deficit with China has more than tripled, going from $4bn to more than $12bn today. Imports from China were $14bn last fiscal year, whereas exports stood at $1.5bn.(Dawn)

Pakistan considering plan to use yuan in trade with China

Pakistan is considering a proposal to replace the U.S. dollar with the Chinese yuan for bilateral trade between Pakistan and China, the English-language daily newspaper Dawn reported on Tuesday.Bilateral trade between the countries totaled $13.8 billion in 2015 to 2016.

Interior Minister Ahsan Iqbal, who has been central to the planning and implementation of China-Pakistan economic ties, was reported discussing the proposal after unveiling a long-term economic development cooperation plan for the two countries. (Reuters)

Are Pakistan, Iran and China prepared for trilateral nexus?

The idea that China, Pakistan and Iran should develop a trilateral nexus seems to be gaining momentum. It is evident from the emerging consensus among the three countries and their civil societies. (Asia Times)

Turkmenistan gas to ease winter shortage in China
China’s increasing imports from the Amy Darya natural gas project in Turkmenistan will further secure supply for China’s residential heating, in an effort to ease the country’s current winter gas shortage, announced China National Petroleum Corp (CNPC).According to statistics released by CNPC on Dec.17, the company’s 101 gas wells and two gas processing stations in Turkmen have kicked into overdrive to increase gas supply to China, while its daily volume of imported gas has increased 5 million cubic meters to 39 million cubic meters for the last six days. (People's Daily)

CENTRAL ASIA

Uzbek leader says he will curb power of state security service 

Uzbek president Shavkat Mirziyoyev said on Friday he would reform the Central Asian nation’s state security service, adding that its power had become excessive under his predecessor Islam Karimov. (Reuters)

Uzbek dictator Islam Karimov to be memorialised by British sculptor
The late president of Uzbekistan, Islam Karimov, was widely regarded as one of the most ruthless dictators in recent history. His regime jailed and tortured critics, and massacred hundreds of unarmed protesters in the town of Andijan in 2005.However, despite his reputation, a leading British sculptor is working on a memorial in Moscow to Karimov, who died last year after a 27-year rule over Uzbekistan. (Guardian)

Attacks on Press Freedom Show Central Asia’s Authoritarian Side

In the past few weeks and months, a staggering number of attacks on press freedom has dotted Central Asia, exposing the hypersensitive disposition of the authorities toward critical voices. One of the most worrying cases involved independent journalist Khayrullo Mirsaidov. He was arrested after he penned an open letter to Tajik President Emomali Rahmon denouncing a request for a bribe that he received from a public official. The official denied the allegation and sued Mirsaidov for defamation. (Diplomat)

Pechino nel mirino della nuova strategia sulla sicurezza Usa

Cina e Russia rappresentano una sfida “al potere, all’influenza e agli interessi americani”. E’ quanto stabilisce il primo rapporto sulla strategia di sicurezza nazionale redatto dall’amministrazione Trump dopo 11 mesi di consultazioni e reso noto nella giornata di ieri. Secondo il documento — che dichiaratamente trae ispirazione dall”America First” e ambisce a dare coerenza alle politiche della Casa Bianca in balia delle fluttuazioni umorali di Trump — Pechino e Mosca “sono determinati a rendere le loro economie meno libere e meno oneste, a far crescere le loro forze armate, a controllare informazioni e dati per reprimere le loro società ed espandere la loro influenza, e a tentare di erodere la sicurezza e la prosperità del nostro paese”. Come? Attraverso lo sviluppo di “armi e capacità avanzate” in grado di minacciare “infrastrutture critiche e la nostra architettura di controllo e comando”.

“Cercheremo di costruire una grande partnership con questi e altri paesi, ma sempre in modo da proteggere il nostro interesse nazionale”, ha affermato Trump presentando il rapporto in 68 pagine. Mar cinese meridionale, diritti di proprietà intellettuale e competizione nei paesi in via di sviluppo sono — secondo il presidente statunitense — alcune delle aree teatro di scontro tra la prima e la seconda economia mondiale. Nel dettaglio, “gli sforzi [con cui Pechino] costruisce e militarizza avamposti nel Mar cinese meridionale mettono in pericolo il libero passaggio dei commerci, minacciano la sovranità delle altre nazioni e minano la stabilità regionale”. Non a caso tanto la Cina quanto la Russia vengono definite potenze “revisioniste”, intente a sovvertire lo status quo e l’ordine internazionale, al fianco di “regimi canaglia” (Iran e Corea del Nord”) e “organizzazioni terroristiche transnazionali”.

Per l’amministrazione Trump, la strategia cinese prevede l’imposizione della propria agenda politica attraverso incentivi economici e punizioni nei confronti dei paesi compiacenti od ostili. Da qui, l’appello dell’inquilino dello Studio Ovale a incrementare gli investimenti infrastrutturali statunitensi nelle nazioni emergenti (specie nell’America Latina), dove il gigante asiatico è attivo più che mai con la sua Nuova Via della Seta da 900 miliardi di dollari.

Il documento, che trae spunto dai discorsi pronunciati dal nuovo presidente americano durante le sue apparizioni in Europa, Asia e presso le Nazioni Unite, sancisce un’inversione a U rispetto al mandato di Obama, quando Pechino veniva considerato un “partner strategico” votato allo sviluppo di “relazioni tra grandi potenze”. Di più. Estende il concetto di “sicurezza nazionale” fino ad abbracciare l’ambito universitario e dell’hi-tech. A finire nel mirino, dunque, non sono solo le operazioni finanziarie dei colossi statali ma anche l’alluvione di studenti cinesi specializzati in materie scientifiche. In un report del dipartimento della Difesa (“China’s Technology Transfer Strategy: How Chinese Investments in Emerging Technology Enable a Strategic Competitor to Access the Crown Jewels of US Innovation”), declassificato di recente, lo shopping cinese negli States viene associato a un compromettente trasferimento di tecnologia al pari dei cyber-furti. Pare che proprio tale analisi abbia ispirato la legislazione bipartisan (il Foreign Investment Risk Review Modernisation Act) che, se approvata, inasprirà i criteri sulla base dei quali il Committee on Foreign Investment in the United States (CFIUS) promuove o boccia gli investimenti stranieri, specie quando diretti nella tecnologia “dual use”, ovvero con possibili scopi militari. Intanto, a gennaio dovrebbe venire annunciato l’esito di due indagini indipendenti avviate da Washington per valutare l’impatto delle importazioni di acciaio e alluminio. La Cina è ovviamente nel mirino.

Il fatto è che per anni gli Stati Uniti hanno agito presupponendo erroneamente “che l’impegno con i rivali e la loro inclusione nelle istituzioni internazionali e nel commercio globale li avrebbe trasformati in attori benevoli e partner affidabili”. La delusione americana va oltre il settore strettamente commerciale, come lascia trasparire il riferimento alle violazioni dei diritti umani, prima volta che Trump sembra interessarsi alla soppressione delle libertà oltre la Muraglia e alla minaccia ai valori americani.

Pechino non l’ha presa bene. Dopo aver tentato di mettere le mani avanti appellandosi alla natura “win- win” delle relazioni bilaterali (che valgono circa 580 miliardi di dollari), quest’oggi il ministero degli Esteri cinese ha accusato Washington di “distorcere le reali intenzioni strategiche della Cina” sfoderando una mentalità “da Guerra Fredda”. “E’ completamente egoistico mettere i propri interessi nazionali al disopra dell’interesse comune delle altre nazioni e della comunità internazionale. Tutto questo porterà a un autoisolamento”, ha tuonato l’ambasciata cinese negli Stati Uniti. Meno categorico il quotidiano China Daily, che pur riconoscendo “l’esacerbarsi delle frizioni commerciali” ha sottolineato come nel suo discorso Trump abbia ricordato che gli interessi delle due nazioni sono “sempre più intrecciati”. Una frase sembra infatti lasciare uno spiraglio per il dialogo: “la competizione non implica sempre ostilità, né conduce inevitabilmente al conflitto”, ha affermato The Donald. D’altronde, dopo aver prospettato ritorsioni economiche in campagna elettorale, nell’ultimo anno il presidente americano è stato costretto ad accantonare i toni belligeranti nella speranza di ottenere l’appoggio di Pechino davanti alla minaccia nordcoreana. La realpolitik trumpiana è fatta anche di compromessi, ora sta alla Cina riuscire a capitalizzarne le imprevedibilità.

[Pubblicato su Il Fatto quotidiano online]

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

Exclusive: China's CEFC plans its own bank, as Rosneft stake bulks up tradeCEFC China Energy, a privately-owned conglomerate which is buying a stake in Russian state oil firm Rosneft, plans to launch its own bank early next year in a latest step to build financial muscle along with its oil and gas assets, two company executives said. (reuters)

Good China-Russia ties benefit world stability

Russian Prime Minister Dmitry Medvedev's visit to China has further cemented the all-round strategic partnership between the two countries, which was already nothing short of substantial, thanks to their cooperation and exchanges in a wide range of areas. The meeting between Medvedev and Premier Li Keqiang on 31 October and their holding of the 22nd China-Russia Prime Ministers' Regular Meeting on 1 November, the first after the 19th National Congress of the Communist Party of China, showcased the closeness of ties that have been forged through frequent high-level talks. (China Daily)

Serbia torn between EU attraction and China ambitions

Serbia has one of the fastest growing economies in Europe. New highways are being built, more money is being spent on education and it is breaking new ground in the renewable energy, construction and engineering sectors. Serbia’s ability to attract substantial foreign investment, particularly from China, has been vital to this transformation. But this is now at risk. Securing inward investment is vital not just for growth and employment in the country, but to make the judicial, political and economic reforms necessary for Serbia’s accession to the Economic Union. China is bringing new technical expertise and innovation. Yet, rather than embrace a new vision for Europe, the European Union’s scepticism over China threatens to undermine future growth and stability. (FT)

How Competitive Is the Caucasus Train to China?

The Baku-Tbilisi-Kars (BTK) railway opens a new front in competition between the Caucasus club (Azerbaijan, Turkey and Georgia) and Russia; this time, for a prime spot in the Chinese-government-led effort to reinvent an Asia-Europe trade route, the Silk Road. (Eurasianet)

Construction goes smoothly on China-Russia gas pipeline

Construction of two underwater tunnels on the China-Russia East-Route Natural Gas Pipeline is going smoothly, local government said on Thursday.Gas pipelines will be installed in the two tunnels, each 1,139 meters long, connecting Heihe in Heilongjiang Province, and Blagoveshchensk in Russia, the Heihe city government said in a statement. (Xinhua)

Romania targets regional energy power with mega investment plans

Romania has been seeking synergy between its energy strategy and the China-Central and Eastern Europe (CEE) "16+1" cooperation framework, as Bucharest authorities are to host a "16+1" ministerial conference on energy co-operation on Wednesday. The conference, together with a three-day Energy Fair, will be a high-level networking occasion for governments, European Union and Energy Community officials and other relevant national and regional authorities interested and involved in the wider cooperation format with China, as well as a unique opportunity dedicated to companies operating in energy markets of Central and Eastern Europe and China. (Xinhua)

China Development Bank offers Russia transit-route financing
The Primorye-1 and Primorye-2 routes connect China’s northwest provinces with Far East Russian ports (Asia Times)

Quietly, China is reneging on promises to respect minority ethnic languages in its troubled northwest

Although Chinese law protects the rights of Uyghur and Kazakh communities to be educated in their own languages (Uyghur and Kazakh are related to each other and to Turkish; both are unrelated to Chinese), in a recent report translated into English by Luisetta Mudle for Rado Free Asia, Qiao Long and Yang Fan write that authorities in some areas of Xinjiang are enforcing a new directive that prohibits the use of any educational materials in Uyghur or Kazakh in schools. The directive specifies that “the use of all Uyghur and Kazakh-medium textbooks and teaching materials must be terminated across the board,” and orders that those materials “be put away in sealed storage.”Central Asia has been a hotbed of politically motivated language policy recently. Back in April, we reported on strict new regulations on the transportation of books to Tajikistan, which borders Xinjiang. Earlier this month, Kazakhstan’s President Nursultan Nazarbayev made waves when he announced the Kazakh language would cease to be written with the Cyrillic alphabet, and instead adopt the Latin. The government in Xinjiang this summer banned books by Saifuddin Azizi, a transnational revolutionary who traveled with Mao Zedong and served, for a term of more than twenty years, as the first chairman of the Xinjiang Uyghur Autonomous Region. (mhpbooks)

CENTRAL ASIA

Central Asia Is Seen as Breeding Ground of Militancy

(Nyt)

NYC attack: Is Central Asia a 'hotbed for extremism'?

One path of "radicalisation" Central Asians fall victim to is when they become migrant workers in Russia or Turkey, said Alisher Ilkhamov, a research associate at SOAS University of London and programme officer at Open Society Foundations.There, they endure low-paying and dangerous jobs, poor living conditions and isolation from their families and neighbourhoods, Ilkhamov told Al Jazeera. He also blamed the government of Uzbekistan for pursuing policies that force Uzbeks to seek work abroad. "If you look at the statistics of how many people applied for this [diversity] lottery over the past decade, the curve is going sharply up," Ilkhamov said, referring to the visa programme in which Saipov entered the US. "I think [this] indicates a very unhealthy situation from an economic point of view in Uzbekistan, so many people being forced to leave the country," he added. (aljazeera)

Today’s Uzbekistan and Manhattan’s Deadly Truck Attack

Sayfullo Saipov left Uzbekistan in 2010, aged 21 or 22, and entered the U.S. legally on a Diversity Visa Lottery Program. We cannot say with certainty yet when he was radicalised, but both U.S. and Uzbek authorities say it was in the U.S. Others, including Saipov’s Uzbek wife and another Uzbek man, are being questioned by the FBI. It is not clear whether Saipov had any direct contact with the Islamic State (ISIS) or other Central Asians linked to the group, but ISIS, after some delay, claimed responsibility for the attack on 3 November. There is no evidence of any connection to the Islamic Movement of Uzbekistan, a jihadist group that has operated for much of the last fifteen years in Afghanistan and Pakistan. (crisisgroup)

Suppressed at home, some Uzbeks turn to militancy abroad
Pushed by a lack of jobs and strict control of behaviour and dissent, millions of Uzbeks have emigrated in recent years. Hundreds of those joined ISIS in the Middle East, while others turned to religious extremism in their host countries.Sayfullo Saipov, the Uzbek immigrant accused of killing eight people in a truck attack in New York on Tuesday, appears to have taken the latter path, becoming radicalised after struggling with life in the West. (straitstimes)

Kazakhstan’s Secret Billionaires
A massive leak of documents reveals the hidden owners behind Meridian Capital, a major Kazakhstani investment and holding company with interests in oil and gas, real estate, mining, banks, aviation, transportation, and more.For over a decade, Kazakhstan’s most valuable resources – its oil and gas – have been in the hands of one man. Known for little else other than his managerial skill, the unassuming Sauat Mynbayev has negotiated deals on behalf of his government with oil industry executives from across the world. (occrp)

Tajikistan culls foreign-trained clerics over radicalisation

Ex-Soviet Tajikistan has announced that all imams who received their religious training abroad will be sacked, a cull the Central Asian country's governmenthopes will help prevent radicalisation. Around 20 mosque heads "have been brought to justice and convicted for involvement in extremist religious activities, the committee member said. (Afp)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

CEE Is Key to China’s Belt and Road Initiative

With deep government pockets, technical sophistication and a comprehensive investment plan behind it, China’s Belt and Road Initiative (BRI) can have a big impact on the transformation of the Western Balkans. There are caveats, not least debt dependency on cheap Chinese loans, but a proactive approach throughout the region could bring welcome development for many in countries that are not prime investment destinations. That is the conclusion of a major new report, commissioned by the EBRD, which looks at the potential for growth through Chinese infrastructure investments in Central and South-Eastern Europe. (emerging-europe.com)

Could Nepal’s new communist pact mean closer ties with China?
The creation of an alliance of communist parties in Nepal ahead of the upcoming provincial and national elections could lead to closer ties between Kathmandu and Beijing, observers said.

Exclusive: The CPEC plan for Pakistan’s digital future

A new, upgraded cross-border fibre optic cable will address multiple challenges faced by China and Pakistan. (Dawn)

Russia turns to new friends from China and the Middle East
Six years after Rosneft marked a new high watermark in US-Russian corporate relations by agreeing a co-operation deal with ExxonMobil, the Kremlin-controlled oil company has found alternate support from the east. CEFC China Energy agreed last month to pay $9.1bn for a 14.16 per cent stake in Rosneft — and it is not the only Russian company to find new friends in China. (FT)

Rosneft aims to up oil exports to China through Kazakhstan
Russia’s largest oil producer Rosneft wants to boost its supplies of oil to China through Kazakhstan to as much as 18 million tonnes (360,000 bpd) per year from around 10 million tonnes in 2017, industry sources told Reuters. Such a big increase may significantly drain flows of Urals blend to Europe at a time when Russian oil output has been reduced as part of a global pact to support prices. (Azernews)

Xinjiang university calls for promoting Putonghua - Global Times

Professors at Kashgar University in Northwest China's Xinjiang Uyghur Autonomous Region have called for the faculty and students there to speak Putonghua to promote social stability, in a letter published on the school's WeChat account on Sunday. They asked that all members of the faculty and students from all ethnic groups use Putonghua to communicate as a common language, meaning they are asked to speak Putonghua both in and outside the classroom, and between teachers, students, friends and family. (globaltimes)

Construction of new airport begins near China-Russia border

Construction of a new civilian airport has started on China's border with Russia in the northeastern province of Heilongjiang, authorities said on 11 October. Construction of Dongning Airport began 10 October in the border city of Suifenhe, with an estimated budget of 1.15 billion yuan (174 million U.S. dollars), said a city official. Xinhua

How China’s biggest debtors may struggle to pay off their loans

According to the Scmp, Chinese investments in the Karachi Nuclear Power Plant Complex are a rare example of a major Chinese loan that does not face specific concerns about repayment. The Chinese bank is financing most the project with US$4 billion of preferential buyer credit at an interest rate of 2 per cent, a buyer credit of US$2.2 billion at a rate of 6 per cent, and the remainder is a concessional loan at a rate of 1 per cent. (Scmp)

China's CEFC set to raise $5.1 billion from VTB for Rosneft deal: sources
CEFC China Energy is set to raise $5.1 billion in short-term loans from VTB (VTBR.MM), Russia’s second-biggest lender, to part finance its $9.1 billion purchase of a stake in Rosneft Oil ROSM.NN, three people with knowledge of the matter said. CEFC last month said it will buy a 14.16 percent stake in the Russian oil major from a consortium of Glencore and the Qatar Investment Authority, strengthening energy ties between Moscow and Beijing. (Reuters)

If You Build It, They Will Lend: Why Japan May Fund More Infrastructure than China

Demand for infrastructure is growing as developed countries replace deteriorating infrastructure and emerging economies invest in new projects. China has attracted significant attention through its One Belt, One Road initiative and the founding of the Asia Infrastructure Investment Bank, but Japan has recently dominated global project finance. With low borrowing costs and limited domestic credit demand, Japanese banks may be best positioned to lead the financing of a global infrastructure push. (FEDERAL RESERVE BANK OF SAN FRANCISCO)


Afghanistan obtains AIIB permanent membership
Afghanistan has obtained the permanent membership of the Asian Infrastructure Investment Bank (AIIB), the country's finance ministry reported on its website Sunday. Afghan Finance Minister Eklil Hakimi received the Certificate of Permanent Membership of the AIIB on the sidelines of the World Bank and International Monetary Fund (IMF) meeting earlier this week in Washington, the United States, the ministry said in a statement. (globaltimes)

Changchun starts freight train service to Hamburg
China's northeast city Changchun saw its first freight train depart to Hamburg, on 13 October. The trip will take 12 to 15 days at the maximum speed of 120 kilometers per hour, according to a local official. Liu Changlong, Changchun's mayor, said at the opening ceremony that the move will give an impetus to the city's economy and further integrate Changchun with the rest of the world. (China Daily)

Direct China-Britain freight train likely to reshape trade, says logistics chief
The direct China-Britain freight train is likely to shake up traditional trade patterns as speed and reliability are the key in modern supply, said Nichola Silveira, general manager of Logistics of DP World London Gateway. The first China-bound freight train carrying British products left DP World London Gateway terminal on April 10 and arrived at eastern China's Yiwu city known as China's "world supermarket" after a 19-day journey. (China Daily)

CENTRAL ASIA

The Domestic Challenge to Kyrgyzstan’s Milestone Election
Kyrgyzstan’s forthcoming presidential elections on 15 October are a milestone for Central Asia: for the first time, a president from the region will voluntarily stand down at the end of his constitutionally mandated term. Kyrgyzstan has come far in the seven years since the tumultuous events of 2010, when President Kurmanbek Bakiyev was ousted in Bishkek and ethnic violence engulfed the southern city of Osh, killing over 400 people, mostly Uzbeks. The presidential race is tight and unpredictable. Sooronbai Jeenbekov, from the southern province of Jalalabad and representing the ruling Social Democratic Party of Kyrgyzstan (SDPK) party, faces Omurbek Babanov, a wealthy independent candidate from the northern province of Talas, still closely aligned with the party he formed in 2010, Respublika. But whoever wins the ballot will face renewed north-south regional tensions as well as rivalries within Osh, where the memory of violence is still fresh and small arms abound. (Crisis Group)

Will Kyrgyz Democracy Pass Its Next Test?
The outcome of this weekend’s election usher in an unprecedented transfer of power between elected presidents. (Diplomat)

Kyrgyzstan to vote in Central Asia's first real election
Kyrgyzstan will vote on Sunday in the first genuinely competitive leadership election in Central Asia.
The vote on Oct. 15 is Kyrgyzstan's second presidential election since a revolution in 2010 but its first competitive one, a watershed for a region more closely associated with Soviet-tinged autocratic leaders. (Nikkei)

Turkmenistan Downgrades Parliament in Favor of People’s Council
The president of Turkmenistan has approved changes to the constitution downgrading the role of parliament in favor of a revived People’s Council, canceling a minor token gesture toward democratization adopted a decade ago.At the same time, President Gurbanguly Berdymukhamedov has followed through on his long-awaited plan to cancel wide-ranging subsidies that guaranteed Turkmen households free gas, water and electricity. (eurasianet)

Junk Bond Boom Reaches Far Corners of the World
Investors’ thirst for income is enabling governments and companies in some of the world’s poorest countries to sell debt at lower and lower interest rates. And the global bond boom has even reached Tajikistan. (WSJ)

Chief National Security Official of Kazakhstan almost secretly met with the US Secretary of State

Chairman of the National Security Committee of Kazakhstan Karim Masimov, while in Washington, met with Secretary of State Rex Tillerson. The State Department informs on Facebook. The statesmen met on 10 October behind closed doors. Neither details of the meeting, nor the official purpose of the visit is known. Not a single Kazakh media reported a visit. (Fergana News)

Pakistan investment climate

On October 4, the Karachi Stock Exchange 100 index closed at 40,461 points, touching as low as 39,869.88 intraday, Kunwar Khuldune Shaid writes. The market had lost 1,948 points in three days as selling pressures took their toll. However, the tumble in the markets was just the tip of the iceberg. While investors and market analysts feel that the Pakistani government is “distracted,” they are also worried about taxation policies. Altogether, they anticipate that this is going to start hurting the economy and the country’s investment climate. The main driver behind all of this is the ongoing political turmoil in the country following the ouster of Nawaz Sharif as prime minister in July. He had been serving for a third time before his disqualification by Pakistan’s Supreme Court. The KSE-100 Index shed 1,670 points (3.6%) in the immediate hours after the apex court’s verdict. (Asia Times)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China's armed police hold anti-terror exercise in Xinjiang

China's armed police on Tuesday completed an anti-terror exercise in Xinjiang Uygur Autonomous Region. The exercise, held simultaneously in several locations including Aksu, Kashgar, Urumqi and Yili over the past three and half days, included more than 10,000 people, according to a military statement. The exercise examined the force's ability to carry out missions in complicated environments such as in deserts, plateaus and mountainous regions, as well as nighttime operations, it said. (global times)

Caspian Sea is China's best bet for Belt and Road

Kazakhstan-to-Greece route aligns Beijing's land and maritime strategies (NIKKEI)

Project with Ukraine to bolster nation's aircraft engine capability

China is working with Ukraine on an industrial park to build aircraft engines, a joint venture expected to extensively boost China's research, development and production capabilities in that area, according to project insiders. Chongqing Skyrizon Aero-Propulsion Industrial Park, which broke ground in late 2015, will cover 5 square kilometers in the Chongqing Liangjiang New Area, and involves an nvestment of 20 billion yuan ($3.04 billion). (China Daily)

China’s new campaign to instil official historical narrative in Xinjiang
China’s far western Xinjiang is set to roll out an ideological campaign to instil the official Communist Party narrative of the region’s history in its officials, religious leaders and the masses. Yu Zhengsheng, the party’s fourth-ranking official who is in charge of religion and ethnic minorities, presided at a high-level meeting in Beijing this week to address “several historical issues” regarding the restive region, official news agency Xinhua reported. (scmp)

China quickens work on Pakistan utility in area claimed by India
China is racing to finish one of the biggest hydro-power projects in Pakistan ahead of schedule, yet its location in the long-contested region of Kashmir will draw ire from India. India-China relations at a low following territorial dispute. Bloomberg

Opaque Chinese oil group makes clear gains in former Soviet bloc
A little-known company linked to the People’s Liberation Army has emerged as the leading acquirer of assets in the former Soviet bloc among China’s private companies, strengthening ties between Beijing and Moscow. The rise of Shanghai-based CEFC China Energy has unfolded in sync with China’s economic push into central Asia and eastern Europe amid growing co-operation with Russia in matters ranging from disputed Asian islands to the Syrian conflict. (FT)

New rail routes between China and Europe will change trade patterns

ASTANA in Kazakhstan is one of the world’s most remote capitals, surrounded by thousands of kilometres of empty steppe. This summer Astana attempted to launch itself onto the global stage by hosting the World Expo, which closed on September 10th and underwhelmed many attendees. But there are other ways to have an impact. On the city’s north side, away from the Expo’s exhibits, a series of diesel trains, each pulling dozens of containers, roll through the old railway station. Most are heading from China to Europe. (The Economist)

Highway in Tibet opens South Asia to China

The Tibet highway between Xigaze airport and Xigaze city center officially opened to the public on Friday, a short section linking the national highway to the Nepal border which experts said will enable China to forge a route into South Asia in both economic and defense terms.The 40.4-kilometer highway will shorten the journey from an hour to 30 minutes between the dual-use civil and military airport and Tibet's second-largest city, the Tibet Financial Daily reported Sunday. (People's Daly)

Chinese conglomerate CEFC plans investment in Georgia industrial zone

Chinese conglomerate CEFC China Energy said it plans to invest in a free industrial zone in Poti, Georgia, on the Black Sea, as part of a plan to diversify its overseas investments, the company said in a statement on Tuesday.The Chinese firm will take a stake in the industrial zone, which will be engaged in manufacturing, trading and logistics as well as financial services, CEFC said, without giving any details on the size of its investment. (Reuters)

CENTRAL AND SOUTH ASIA

India’s bullet train

The US$17 billion Mumbai-Ahmedabad High Speed Rail (MAHSR) project comes at a time when critics say the money could have gone towards improving basic safety and services, E Jaya Kumar writes. Rail service is critical to the Indian economy and is considered a political hot potato. Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe jointly laid the foundation for the project at Sabarmati station in Ahmedabad on Thursday. The inauguration of the hugely expensive project comes at a time when the railways are reeling under a spate of accidents, a situation exacerbated by terrorism fears. (Asia Times)

Russia’s Balancing Strategy in South Asia
Russia’s ability to maintain cordial security partnerships with both India and Pakistan is highly beneficial for its broader geopolitical aspirations. (Diplomat)

Uzbek community in south of Kyrgyzstan is again tool for manipulating elections

The President's Office of Kyrgyzstan gave direct instructions to local officials in Osh and Jalal-Abad regions of the country to use ethnic Uzbeks for falsifications in presidential elections on 15 October this year. Fergana learned about this from its informed sources.The Uzbek community of Kyrgyzstan feels depressed since the summer of 2010 when an ethnic conflict erupted in the south of the republic. Subsequently, the Uzbek minority, compactly residing in the southern regions of Kyrgyzstan, has already become an instrument for falsifying elections in favour of a candidate from the party of power. (Fergana News)

Kyrgyzstan protests over Kazakh 'support' for opposition candidate

Kyrgyzstan’s government officially protested on Wednesday after Kazakh President Nursultan Nazarbayev met with Kyrgyz opposition presidential candidate Omurbek Babanov, saying its neighbour was interfering in its Oct. 15 election.Nazarbayev’s office said on Tuesday he had met Babanov, a leader of the Kyrgyz opposition Respublika-Ata Zhurt party, in Kazakhstan, and expressed readiness to work “with a new president in whom the Kyrgyz people will put their trust”. (Reuters)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

Chinese investors warned of dangers that lie in wait along the new Silk Road
Public and private institutions are mapping risks for participants in Belt and Road Initiative (Scmp)

China defends Pakistan after Trump calls Pakistan a terrorist haven 

A survey conducted by Pew Research Centre in 2014 showed that Pakistan is China’s strongest supporter in Asia as 78 percent of Pakistanis view China favourably. The strong preference doesn’t come out of nothing. China seems to be the only nation that dare to defend Pakistan against the United States. On 21 August, the U.S. President Donald J. Trump issued his grand strategy in Afghanistan and South Asia, aiming to comprehensively crush terrorism in the region. Hua implied that the United States hasn’t fully recognized Pakistan’s efforts in the international community. Of course, as the nation which does fully recognize Pakistan’s sacrifice, China also “supports the international community in enhancing the international counter-terrorism cooperation and forming synergy.” (TheDiplomat)


China committed to help bring peace to Afghanistan, but Pakistan’s role in process must be respected, says top diplomat
China’s top diplomat Yang Jiechi said during a phone call with US Secretary of State Rex Tillerson on Wednesday that his government was committed to bringing peace to Afghanistan, but also called on the Trump administration to recognise the role of Pakistan in the process. (Scmp)

U.S. Shift Boosts Afghans, Risks Pushing Pakistan Toward China
The Trump administration’s new Afghan strategy bolstered Kabul in its fight against the Taliban, but officials and analysts in Pakistan warned that Washington’s approach risks fueling the 16-year war in Afghanistan and encourages Islamabad to deepen ties with China. (WSJ)

TRUMP BEWARE: PAKISTAN’S LUCK PLAYING CHINA CARD IS TURNING

When the bin Laden raid sent US-Pakistan ties into a tailspin, Beijing rebuffed the advances of Islamabad. But six years on, as relations head south once again, China’s calculus has changed (scmp)

Chinese company seeking railway revival to invest in Afghan marble sector
A delegation of Qin Gen Industrial Company of China, headed by deputy general manager Li Yingjun, has met officials with Afghan Chamber of Commerce and Industries (ACCI) and a number of businessmen and emphasized on joint efforts to enhance cooperation on infrastructures including railway connectivity and trade under the Belt and Road Initiative.Expressing interest in investment in Afghan minerals extraction, Li said the company wants to invest in marble filed and its import. (Xinhua)

Central China transportation hub sees 200 Sino-European freight trains this year
Central China's Wuhan city, a transportation hub, has seen more than 200 Sino-European freight trains so far this year, said local authorities on Saturday. As of Friday, 100 freight trains between China and Europe have left Wuhan, and the city received 103. A total of 18,000 containers were carried, up 41.5 percent from last year, according to Wuhan Asia-Europe Logistics which runs the trains. By May 13 this year when the 1,000th Sino-European freight train left China, the country had 51 Sino-European freight train routes, with trains from 28 Chinese cities travelling to 29 cities in 11 European countries. (People's Daily)

Eurasia high speed railway from Germany to China can be built by 2026

Construction of the Eurasia high speed railway (HSR) connecting Europe to China can be completed by 2026, Russian Railways said in its presentation available with TASS. Construction start at different segment varies from 2018 (Moscow - Kazan HSR) to 2023 (Krasnoye-Moscow and Chelyabinsk - Zolotaya Sopka). The project can be financed with participation of the Russian Direct Investment Fund, BRICS New Development Bank, Eurasian Development Bank, Silk Road Fund and Russia-China Investment Fund, according to Russian Railways. (TASS)

China recruits 30,000 teachers, police, civil servants to move to Xinjiang

Chinese authorities in the troubled northwestern region of Xinjiang have launched a massive nationwide recruitment drive seeking tens of thousands of new police officers, civil servants, teachers, academics, and airline staff. Dangling incentives like free housing, household registration documents, and bonuses, the Xinjiang regional government alone is recruiting more than 12,000 staff out of the 30,000 or more jobs now on offer. Most of the jobs listed by the search engine Sohu require applicants to pass a "political test," while the scope of the advertising and benefits appears geared to majority Han Chinese from elsewhere in the country. RFA

Canadian Journalist Briefly Detained in Xinjiang
Canadian journalist Nathan VanderKlippe, The Globe and Mail’s Beijing-based Asia correspondent, was detained in Elishku Township, Xinjiang on August 23 for over three hours. VanderKlippe in 2014 won an Amnesty International media award for his reporting on Uyghur repression and violence in Xinjiang amid an ongoing terror crackdown in the region. His detention came as foreign journalists in China are experiencing increased harassment, and as state security policies in Xinjiang continue to tighten. (chinadigitaltimes.net)

Loudspeakers from mosques removed in Qinghai to eliminate noise

The Hualong Hui Autonomous County in Northwest China's Qinghai Province has removed over 1,000 loudspeakers from mosques to eliminate noise pollution, according to a report by local newspaper Haidong Times.Loudspeakers were removed from 355 mosques within three days recently in the county with a large Muslim population which is under Haidong city, according to a Friday report that was later deleted. A screen grab of the report is still circulated online.The report said the Hualong government has organized various departments and institutions including the Islamic Association to tackle noise pollution caused by numerous local mosques. (Global Times)

China's Other New Security Concern -- Its Ethnic Kyrgyz

Earlier this month, Qishloq Ovozi looked at China's recent worries about its ethnic Kazakhs and now there is information China has similar concerns about its ethnic Kyrgyz citizens.The Kazakhs and the Kyrgyz are Turkic peoples and the vast majority are Muslims, two distinctions from Han Chinese that are the reasons for Beijing's relatively newfound and increasing unease. (rferl)

Exclusive: China's 'big four' banks raise billions for Belt and Road deals - sources
China's largest state-owned commercial banks are raising tens of billions of dollars to fund the country's Belt and Road investment push, according to people familiar with the matter, bolstering Beijing's ambitions as private capital pulls back. (Reuters)

Is China Winning the Scramble for Eurasia?
Roads, railways and other new connections are reshaping the Eurasian supercontinent and creating new forms of competition as well as cooperation. (National Interest)

CENTRAL ASIA

Russian tanker cuts through Arctic to Asia in record time

A Russian-owned tanker, built to traverse the frozen waters of the Arctic, completed a journey from Europe to Asia in record time this month, auguring well for the future of shipping as global warming melts sea ice. The Christophe de Margerie, a 300m tanker built specifically for the journey, became the first ship to complete the Northern Sea Route without the aid of specialised ice-breaking vessels, said the ship's owner, Sovcomflot, in a statement. (straitstimes)

Kyrgyzstan: Prosecutions Thin Ranks of Presidential Contenders
Two major names in Kyrgyzstani politics have been sentenced to long terms in jail so far in August. Local analysts contend the cases are politically motivated.With presidential election coming up in mid-October, analysts argue the timing of the convictions is not coincidental. They suggest that the cases likely were intended to help members of the ruling elite retain their grip on power. (Eurasianet)

Dushanbe police stop 8,000 women for failing to wear veil correctly
Campaign to "correct" mode of Islamic dress. According to government sources, the veil is a tool to identify women belonging to terrorist groups. (Asia News)